Jane is considering leaving her job and pension at age 65 and has 17 years in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jane is considering leaving her job and pension at age 65 and has 17 years in the defined benefit pension plan which provides a retirement income based on 2% per year of service and the average best five years of income. Her best average five years earnings were $86,000. The pension plan assumes life expectancy is age 92 and the rate of return on 1.1%. What should the commuted value of her pension be if she wanted to transfer the funds into a LIRA? (The present value of the promised income stream). Input to the nearest dollar Jane is considering leaving her job and pension at age 65 and has 17 years in the defined benefit pension plan which provides a retirement income based on 2% per year of service and the average best five years of income. Her best average five years earnings were $86,000. The pension plan assumes life expectancy is age 92 and the rate of return on 1.1%. What should the commuted value of her pension be if she wanted to transfer the funds into a LIRA? (The present value of the promised income stream). Input to the nearest dollar
Expert Answer:
Answer rating: 100% (QA)
Commuted Value Annual Pension Income x Present Value Factor Ste... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
1. Classify costs by behaviour in the existing context 2. Use available data as estimates in the analyses and assess their applicabilityin the analysis. 3. Adjust the breakeven analysis to consider a...
-
A national labor union representing pipeline construction workers has a defined-benefit pension plan for its members. Ron, age 65, is a heavy equipment operator who wants to retire. He has been a...
-
Describe what is meant by the term balanced in the term balanced scorecard method.
-
A particle is confined to a two-dimensional box defined by the following boundary conditions: U(x,y) = 0 for L/2 x L/2 and 3L/2 y v 3L/2; and U(x,y) = elsewhere. (a) Determine the energies of the...
-
What are some important functions of communication from stakeholders?
-
In 2014, Air Asia Flight No. 8501 crashed in the Java Sea while flying from Indonesia to Singapore. The crash resulted in the deaths of all passengers and crew on board. The plane involved in the...
-
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first...
-
2) Rolf throws a small bouncy ball of mass 52.0 g with speed 15.1 m/s. The ball bounces off a wall, rebounding at 13.8 m/s. The ball is in contact with the wall for 2.25 milliseconds (2.25 ms). Find...
-
The Fashion Rack has a monthly accounting period. All transactions are recorded in a general journal. Postings are made from the general journal to the accounts receivable ledger, accounts payable...
-
To test a theory of fruit flies reaching a carrying capacity, the Laurel Springs Science Club creates an environment that will attract fruit flies to a 2-cup glass jar in which is placed food and a...
-
Kyle, who is employed by a CCPC, had the following sources of income for the year: Salary $80,000 Dividends from Canadian-resident public corporations (amount received) $20,000 Employee stock option...
-
The cost of the "Ice Power" system is $8000 and the government will pay 30% of the cost of the system. The company guarantees the system's operation for 15 years and the salesman says the system will...
-
Elaborated with examples and supportive references as to how can index numbers be helpful in understanding time-related data?
-
Jhon, a financial advisor in greater Halifax area, has just emailed his clients giving them the following advice: "there is no doubt that long-term bonds are a great investment because their interest...
-
Discuss which statistical tests to apply for different types of data and how to interpret the results. Support your answer with suitable examples and supportive references
-
Amdahl's Law is a formula that identifies potential performance gains from adding additional computing cores to an application that has both serial (nonparallel) and parallel components. If S is the...
-
Write each fraction as a percent. 7 50
-
What is a stock split? How does a stock split affect the market value of a share of stock? Do you think it would make any difference (in price behavior) if the company also changed the dividend rate...
-
How important is the general behavior of the market in affecting the price performance of mutual funds? Explain. Does the future behavior of the market matter in the selection process? Explain.
-
You invested in the no-load OhYes Mutual Fund 1 year ago by purchasing 1,000 shares of the fund at the net asset value of $25.00 per share. The fund distributed dividends of $1.50 and capital gains...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos PE ratio each year from 2019 to 2023. In which year was it the highest? b. What was Mydecos...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos ROE each year from 2019 to 2023. b. Compute Mydecos ROA each year from 2019 to 2023. c. Which...
-
In early 2018, United Airlines (UAL) had a market capitalization of \($25.14\) billion, debt of \($12.73\) billion, and cash of \($5.59\) billion. United also had annual revenues of \($38.72\)...
Study smarter with the SolutionInn App